893.51/2–1846: Telegram
The Counselor of Embassy in China (Smyth) to the Secretary of State
[Received February 18—12:02 a.m.]
321. From General Marshall. Endorse Eximbank credits of $32,300,000 for ships, railroad equipment, and power plants for items Eximbank approves. (Reurtel No. 296 of February 15.) It would be desirable to avoid such confusion as seems to have occurred with Eximbank cotton loan on which all facts not yet available here. Chinese claiming we are trying to impose conditions which in fact seem eminently reasonable on cotton loan after signing of agreement. Is this last a fact? In any case Eximbank will, I am sure, make conditions explicit before signing of long-term credit for transportation and telecommunication equipment.
[Page 945]I wish to emphasize China’s desperate need for railroad equipment and need to expedite placing and actual delivery of railroad orders.
Bank should check with FLC as well as UNRRA to ensure not undesirable duplication in shipping, etc. Colonel Davis in touch with our efforts to coordinate Chinese supply program.
Bank’s deferring action on coal mining equipment until Pierce reports noted and approved but delays should be curtailed. Please notify bank I shall take appropriate action on advisers. [Marshall.]